Stocks slump…Oil prices drop… Lagarde favours adding yuan to IMF currency basket

NEW YORK, N.Y. – Investors are licking their wounds after the stock market slumped to its second-biggest weekly loss of the year on Friday, breaking a streak of six consecutive weeks of gains. The Dow Jones industrial average fell nearly 203 points, or 1.2 per cent. The S&P 500 gave up about 23 points, or 1.1 per cent. And the Nasdaq slipped 77 points, or 1.5 per cent.

Oil prices are dropping because demand can’t keep up with increasing supplies. Benchmark U.S. crude fell $1.01, or 2.4 per cent, to $40.74 a barrel Friday in New York. And Brent crude, the international benchmark, lost 45 cents, or 1 per cent, to $43.61 a barrel in London.

WASHINGTON (AP) — The head of the International Monetary Fund says she supports adding China to an exclusive club of the world’s top currencies. Christine Lagarde says she supports findings by staff at the IMF that China’s currency, the yuan, meets the criteria for inclusion in the basket of currencies used in the fund’s operations. It would give the yuan the IMF’s seal of approval.

WASHINGTON (AP) — The Food and Drug Administration is approving a new drug from AstraZeneca for patients with lung cancer that has spread despite earlier treatments. The daily pill, Tagrisso, is intended for patients whose tumors have a genetic mutation that affects their growth. The drug was approved under the FDA’s accelerated approval program

LOS ANGELES (AP) — Federal regulators investigating a California oil spill say an inspection weeks before the rupture on May 19 outside Santa Barbara miscalculated corrosion in the pipe and a neighbouring line. The Pipeline and Hazardous Materials Safety Administration has now ordered the operator to purge oil from the neighbouring 129-mile long line and make repairs.